Question

What is a contract? What is the objective theory of contracts? ii. Discuss the four elements that are required for the formation of a contract. iii. Outline the elements necessary for an effective offer. Provide examples of non-offers. iv. Explain how shrink-wrap and click-on agreements differ from other contracts. Discuss how traditional law have been applied to these agreements. v. What is consideration? Discuss what is required for consideration to be legally sufficient.

Answer 1

Contract:

It is an agreement between two or more people or entities that creates a legal duty or responsibility.

Elements of contract:

• Offer and acceptance
• Consideration
• A meeting of the minds regarding the legal subject of the contract
• Legal capacity

Elements necessary for an effective offer:

• Intention: A serious objective intention of the offeror
• Definiteness: The terms of an offer must be defined substantially
• Communication: The offeror must communicate the offer to the offeree.

Consideration:

The legal definition of consideration is the concept of a “bargained-for exchange.” Both parties are getting something that they’ve agreed to, something which has a value

For consideration to be legally sufficient:

• promising to do something that the promisor has no prior legal duty to do
• A bargained for exchange in which there is a legal determinant to the promisor or legal benefit to the promise
• performing an action that the promisor is not otherwise obligated to undertake